Vodafone share price: Telco seeks partner for Indian unit

Vodafone (LON:VOD) is weighing a potential merger of its Indian arm with a rival, The Telegraph has revealed. The news comes after the UK group recently completed its joint venture in the Netherlands with peer Liberty Global.

Vodafone’s share price has fallen deep into the red in London in today’s session, having shed 1.30 percent to 208.60p as of 13:49 GMT, underperforming the benchmark FTSE 100 index which has climbed marginally higher and is currently 0.25 percent better off at 7,227.85 points. The telco’s shares have lost more than six percent of their value over the past year, as compared with an over 22-percent rise in the Footsie.

The Telegraph reported over the weekend that Vodafone was weighing a potential merger of its Indian arm with rivals as it seeks a turnaround in the country’s cut-throat mobile market. The UK telco is understood to be looking at the possibility of a tie-up with either newcomer Jio, or Idea, another of the top four providers.
The news comes with Jio having caused upheaval in the Indian market since its entry in September, forcing rivals to slash prices and profit margins. In November, the UK group disclosed that it had suffered a €5-billion writedown on its Indian unit.

The Telegraph further reported that plans to float part of Vodafone India on the Bombay stock exchange were currently on ice until the price war in India’s mobile market was over.
The 21 analysts offering 12-month price targets for Vodafone for the Financial Times have a median target of 250.00p, with a high estimate of 300.00p and a low estimate of 155.00p. As of January 7, the consensus forecast amongst 32 polled investment analysts covering the stock has it that the company will outperform the market.
As of 14:55 GMT, Monday, 09 January, Vodafone Group plc share price is 208.00p.